Financial Daily from THE HINDU group of publications
Wednesday, May 15, 2002
E-tendering soon to cut project costs
V. Rishi Kumar
HYDERABAD, May 14
AS a part of the ongoing reform process covering both the administration as well as the tendering process for the State projects, the Andhra Pradesh Government has embarked on a technology-driven initiative, which paves the way for an e-tendering system.
This novel approach is designed at curtailing the project cost; bring in greater transparency and also check malpractice associated with the tendering process in the Government-tendered projects.
The Government had to contend with the problems of formation of contractor syndicates and leakage of tender quotes. Following this, the Andhra Pradesh Chief Minister, Mr N. Chandrababu Naidu, had constituted a Cabinet sub-committee to study the system and the administrative mechanism and chart out a route map. Based on this, the Government had decided to go in for e-tendering system.
Under this initiative, all civil and engineering projects, to be routed through the tender-based system, are to be gradually undertaken through this electronic tendering process whereby contractors can apply online and secure information online and also submit their tenders, according to official sources.
The Roads and Buildings Minister, Mr T. Nageshwara Rao, had announced the move after an interactive meeting with contractors.
It is estimated that thousands of crores worth projects are tendered annually and the Government is of the view that even if it is able to save even a fraction of this through better system of tendering, it will bring in savings for the exchequer.
Under this initiative, the Government proposes to place details of the project, the tendering approach and invite applications for tenders making it convenient for those looking to be part of the process.
However, back-up in the form of actual physical submission will also be extended, it is learnt.
The State Cabinet has also learnt to discuss the proposals, and the process is to be formally kick-started shortly.
A meeting of contractors both local as well as from regional centres was convened and there was unanimity about the usefulness of the system.
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